This paper investigates the effect of local government intervention on capital deepening of manufacturing sector by using interprovincial panel data sets of 28 Chinese provinces,municipalities and autonomous regions b...This paper investigates the effect of local government intervention on capital deepening of manufacturing sector by using interprovincial panel data sets of 28 Chinese provinces,municipalities and autonomous regions between 1994 and 2011.Theoretical research indicates that as a transitional economy,China's local government intervention in corporate investment behaviors will cause excessive investment,thus bringing about a long-term and sustained tendency of capital deepening in manufacturing sector.Empirical test further discovers that in a certain range,the phenomenon of capital deepening in manufacturing sector is not an inevitable result endogenous to economic development and technology progress,and that investment behaviors of manufacturing sector are largely subject to the external institutional environment.Fiscal decentralization has indeed promoted capital deepening of manufacturing sector.Financial credit expansion and interventions in SOEs are major instruments for local governments to intervene in the capital deepening of manufacturing sector and such an influence is particularly significant for China's central,western and northeast regions.Therefore,clarifying government functions and improving local government performance review mechanism are of great significance to the healthy development of China's manufacturing sector.展开更多
China＇ s economy has witnessed serious excessive investment over the past 5 years, mainly in the infrastructure and real estate. Excessive investment has adverse impacts on both economic growth and macroeconomic stab...China＇ s economy has witnessed serious excessive investment over the past 5 years, mainly in the infrastructure and real estate. Excessive investment has adverse impacts on both economic growth and macroeconomic stability. The main causes of this excessive investment are inappropriate growth strategies, low interest rates and weak constraints on government investment expenditure. To effectively control excessive investment, China needs to adjust its growth strategy, to speed up the process of interest rate marketization, and reform the existing public expenditure system.展开更多
On September 1 this year,Yangchenghu Primary School in Suzhou,east China’s Jiangsu Province,opened its doors to its first group of students.The total investment in this school amounts to 110 million yuan ($16 million...On September 1 this year,Yangchenghu Primary School in Suzhou,east China’s Jiangsu Province,opened its doors to its first group of students.The total investment in this school amounts to 110 million yuan ($16 million),and it has many advanced facilities.There is convenient access to the Internet,elevators installed and every classroom has an independent lavatory.Its affiliated kindergarten is equipped with a ground source heat pump system.Its ad- vanced facilities have won it a reputation as the"most luxurious primary school"in Suzhou.展开更多
基金funded by Humanities and Social Sciences Research Youth Foundation Program of the Ministry of Education:Challenges of Workforce Absorption of Manufacturing Sector and Solutions-Perspective Based on Capital Deepening(Approval No.12YJC790034)
文摘This paper investigates the effect of local government intervention on capital deepening of manufacturing sector by using interprovincial panel data sets of 28 Chinese provinces,municipalities and autonomous regions between 1994 and 2011.Theoretical research indicates that as a transitional economy,China's local government intervention in corporate investment behaviors will cause excessive investment,thus bringing about a long-term and sustained tendency of capital deepening in manufacturing sector.Empirical test further discovers that in a certain range,the phenomenon of capital deepening in manufacturing sector is not an inevitable result endogenous to economic development and technology progress,and that investment behaviors of manufacturing sector are largely subject to the external institutional environment.Fiscal decentralization has indeed promoted capital deepening of manufacturing sector.Financial credit expansion and interventions in SOEs are major instruments for local governments to intervene in the capital deepening of manufacturing sector and such an influence is particularly significant for China's central,western and northeast regions.Therefore,clarifying government functions and improving local government performance review mechanism are of great significance to the healthy development of China's manufacturing sector.
文摘China＇ s economy has witnessed serious excessive investment over the past 5 years, mainly in the infrastructure and real estate. Excessive investment has adverse impacts on both economic growth and macroeconomic stability. The main causes of this excessive investment are inappropriate growth strategies, low interest rates and weak constraints on government investment expenditure. To effectively control excessive investment, China needs to adjust its growth strategy, to speed up the process of interest rate marketization, and reform the existing public expenditure system.
文摘On September 1 this year,Yangchenghu Primary School in Suzhou,east China’s Jiangsu Province,opened its doors to its first group of students.The total investment in this school amounts to 110 million yuan ($16 million),and it has many advanced facilities.There is convenient access to the Internet,elevators installed and every classroom has an independent lavatory.Its affiliated kindergarten is equipped with a ground source heat pump system.Its ad- vanced facilities have won it a reputation as the"most luxurious primary school"in Suzhou.
